Indian Stock Market News and Views.

The Yellow metal is just going up like a sky rocket as if nothing is there to stop the current prices with the gold prices. You might have heard that India had bought a 200 tonnes of gold from the IMF (International Monetary Fund) for $6.7 billion. But would be the idea behind such a move? any ideas for that? With this move India’s gold earnings will be the tenth largest among the world central banks. This deal has triggered many analyst with their own versions of the deal, since RBI is silent with the deal stating it as foreign exchange reserve management.

There are some types of Income that the tax department has given as not to pay taxes, if the income comes from these sources, we can have a small walk through these, as normally people loves saving tax and its high time that we know about the income excluded from tax.

Agriculture activity income is not treated as an income this can be more explained with the help of an example if your father gives you money from his agricultural income as a gift then you do not have to treat it as taxable income, but father should be a person who files his return.

The new UPA government is bringing its first budget of the Govt tomorrow. Needless to say that the economic situation is tough in here. Many experts believe that the budget is mainly focused on structural reform that will boost growth. The main focus is expected to boost the agriculture, infrastructure and telecom sectors. India’s fiscal deficit has grown sharply with the stimulus packages that were announced pre election to boost the economy. The defence budget has also seen increased spending on the wake of the terror attacks.

The fiscal deficit is estimated to be grown to 6.2% of GDP for the year ended March 2009 which made it double the governments target of 2.5% which makes it the highest in two decades. The Govt is clear on the stands that India will achieve 7% growth and it is also aware of the dangers that rise in the fiscal deficit would cause. Anyway its just one way head for the day the whole of India and the investors over the world are watching to see the Budget 2009-10.

The new UPA government is bringing its first budget of the Govt tomorrow. Needless to say that the economic situation is tough in here. Many experts believe that the budget is mainly focused on structural reform that will boost growth. The main focus is expected to boost the agriculture, infrastructure and telecom sectors. India’s fiscal deficit has grown sharply with the stimulus packages that were announced pre election to boost the economy. The defence budget has also seen increased spending on the wake of the terror attacks.

Inflation was a problem which we have been hearing normally over the years, and we are too new to Deflation. Is deflation a problem? You might have heard that India’s inflation figures has dropped to a negative 1.61%. We all are aware what Inflation means so normally deflation would just make the opposite of Inflation.

India witnessed the last deflation 33 years ago,(any ways I was not here to witness that) As for a normal person when we hear that its deflation it would mean that the prices have come down, but if we go to the market to find out the truth we can see that its still the same and has not made an difference, then what does this deflation figures actually mean. Don’t be confused over that in India the inflation rate is calculated on an year on year (YOY) basis on the whole sale price index.(more…)

A business survey that was carried out with the 12 economies released showed that Singapore civil servants are the most efficient among the Asian peers, they tend to rectify it when things go wrong. India’s bureaucracy which was ranked as the least efficient by the survey claimed that India’s civil servants was slow with any process. The civil servants are the power centre of their own in the state and national levels, and are extremely resistant to reforms in carrying out their duties, the report added.

Reliance Capital is planning to make the first ever IPO (initial public offer) by an insurance company in India. Reliance Capital IPO is planning to take its subsidiary Reliance Life Insurance public. The company plans to divest 26% in its insurance arm through an IPO. Relaince capital Ipo is looking to divest 10-26%. This would be done through a strategic investor or by the selling of its shares to the public. The funds will be injected to Reliance capital and its life insurance business. The process is expected to complete in the next three to four months time frame.

India has been ranked as the third best country that would win over the global economic crisis. A survey that was conducted worldwide among business persons. According to the Servcorp International Business Confidence Survey the result was India in its third position. The survey which was conducted in April 2009 for a period of two weeks. It had its main focus on the current economic situation, the business morale and the impact the economic crisis has on the world of business.

The companies have increased the dividend payout to its investors erasing fears that they would tighten with the dividends. There are a good number of companies who have increased their dividend. Of the total data available for 377 companies nearly 131 have made increase with their dividend for the year March 2009. The list is said to include the companies that have closed their books on Dec 2008 and Sep 2008 or June 2008. This move would put some relief to the investors who have been burned by the fall of the Sensex last year.